Voters will confront more bonds on 2016 ballot

Dollar Puzzle 02

State Treasurer John Chiang issued a report recently that praises California’s fiscal strides in dealing with debt but also raises warnings that the state is still in the deep end of the debt pool. The issue of debt will be on voters minds as they confront a number of likely ballot issues next year that deal with bonds.

First, the good news from Chiang’s report. The treasurer notes that over the last five years the state has finished paying off economic recovery bonds issued during the fiscal crisis of the last decade, strengthened the state budget rainy day fund, and potentially saved millions with pension reform. All this has lead to increased credit ratings from the credit rating agencies Moody’s, Standard & Poor’s and Fitch.  With the improved ratings the treasurer was able to refinance some of the state’s debt and save taxpayers up to $2 billion.

However, Chiang observed that despite the rise in credit ratings, California still has the third worst credit rating of all the states ahead of only Illinois and New Jersey. He raised concerns about health care and pension costs for public employees that add to the state’s debt.

Chiang, in his report, argued that adding to debt could be a good thing or bad thing depending on how the money is spent. He points to the value of Pat Brown’s State Water Project as a positive use of bonds. But he also warns too much debt can lead to catastrophic circumstances as it did in the cities of Stockton and San Bernardino.

Bonds on the Ballot

State voters will consider adding to the state’s debt in next year’s general election.

Already qualified for the November 2016 election is a school construction bond that came via the initiative process. It is backed by a combination of business and labor. If passed it would allow the state to sell $9 billion in general obligation bonds.

In addition, there is a discussion about another water bond. The argument is that the Proposition 1 water bond of 2014 was not enough to deal with issues related to the drought. The size of this bond proposal is not known. Proposition 1 approved a bond worth $7.1 billion.

There could be more bond ideas coming out of the special session considering ways to improve the roads and other infrastructure. In fact, Chiang touched on infrastructure in his report: “I strongly believe we need to conduct a full accounting of all the state’s capital assets – including its crumbling roads, bridges and levees. We then need to assess the remaining useful life of this deteriorating infrastructure and determine the cost of repairs and ultimate replacement.”

Finally, there likely will be a measure on the November 2016 ballot that will give voters a say on revenue bonds over $2 billion. Voters already have a say in general obligation bonds that are covered with tax dollars. Revenue bonds are repaid with funds generated from the services provided by the projects the bonds are used to build. This measure is controversial and will get much attention.

The issue of debt is once again front and center for California’s voters.

15 comments

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  1. Ulysses Uhaul
    Ulysses Uhaul 15 October, 2015, 09:01

    The people love bonds. Get goodies with nothing up front. So Capitalism and called leverage!

    Reply this comment
  2. KJM
    KJM 15 October, 2015, 10:18

    It will never be enough…ever

    Reply this comment
    • Mr. Whistle
      Mr. Whistle 15 October, 2015, 16:42

      KJM is right. For those of you that watched the Dem Debate the other night, saw 5 people running for president that said they are Socialists, and as usual promised everything under the sun to get votes. Can you say free Obama phones? More welfare programs, and they DARED to say Social Security is an entitlement. NONE said the proper program name, which is
      SUPPLEMENTAL SOCIAL SECURITY. The key word is Supplemental here. The difference is the taxpayer paid into a program to “supplement” what they “individually” save…. It was NEVER presented as a fully funded retirement program.

      One must and has to BLAME Lyndon Johnson (Dem) for changing the program in the early 1960’s from the program it was to the Great Society pushed through, and stripped the SSS program of its money. Had that NOT been done, and the money spent, Supplemental Social Security would have plenty of money to meet future needs……
      I am one who has paid into the SSS program by mandate since my first job. And now, nearly eligible to collect what has been promised, and did my part for nearly 50 years, is in danger of NOT getting the “earned entitlement” promised to me by my government…………
      The proof is in the numbers. Why has our Nat Debt gone up double since the current socialist President has been in office?
      I think all of us, D or R or I know the answer……….
      But, will America vote for the D leader who is currently under FBI investigation?
      Last, re-read what Chiang has said above again. Ca has the 3rd WORST credit rating in our Nation. What does THAT say about the party in control of CA for the last 30 years……….
      Think people, THINK!

      Reply this comment
  3. Dude
    Dude 15 October, 2015, 10:45

    Governor Moonbeam’s favorites…..

    1). “Illegal Alien Immunity For Killing. Americans”
    2). “Illegal Alien Right To Vote…Multiple Times”
    3). “Give Illegal Aliens All Our Stuff Act”
    4). .”Grind Americans To Dust Tax”

    Reply this comment
    • NTHEOC
      NTHEOC 15 October, 2015, 15:18

      Dude, we do not use the term “Illegal Alien”. It is just as offensive as the N word or other racist comments…Thank You.

      Reply this comment
      • Dude
        Dude 15 October, 2015, 15:28

        You may not like it, but your comparison to the”N” word is incorrect. “Illegal Alien” is the correct legal definition. They aren’t “Undocumented”. They are here illegally. They are “Aliens”, as in, not American citizens. “Illegal Aliens”. The only thing I’m guilty of is not being politically correct.

        Reply this comment
      • Mr. Whistle
        Mr. Whistle 15 October, 2015, 16:22

        I agree with DUDE on this one. If you enter our country illegally, you are an Illegal according to Fed law.
        If you are not an American Citizen, you are an alien.
        Both words have meaning to describe somebody that is in the USA that does not meet the requirements of being a LEGAL alien. What would you rather folks say ? Federal Criminal Trespasser? Undocumented should NOT be used, as it was a criminal act to enter this country without proper documentation, and those folks coming here know that. So cut the PC garbage and tell it like it is. It is NOT racist in any form, it is the English language used to describe a person who is here illegally and is an alien. Perhaps the real problem is where folks are coming from in the first place. Why are they leaving? We have a process of legal entry, but most don’t want to play by the rules…….
        Perhaps if those same people would stand up to their OWN government for change, like USA did 200+ years ago, they could clean up their own mess and not have to break the laws of the USA…….

        Reply this comment
  4. Dude
    Dude 15 October, 2015, 10:47

    Just Say No !!!!!!!!

    Reply this comment
  5. NTHEOC
    NTHEOC 15 October, 2015, 15:13

    California has the most robust economy in the Nation! We have plenty of people with money so its good to spread the wealth around. Complain all you want DOOMERS but every one of these will pass.

    Reply this comment
    • Mr. Whistle
      Mr. Whistle 15 October, 2015, 16:07

      NTHEOC – robust economy? While not a DOOMER, I am a realist, and while the THIS Democratically controlled legislature has NO fiscal restrain, READ Debt – they continue to kick the can down the road. See the Budget, and see how many agencies were stripped of money by so called loans. Add that all up, with some of these loans going back 8-10 year or more and are STILL unpaid. We have a stupid train sucking tax money, yet no additional water storage for last 30+ years.
      We need BUSINESS folks elected, not mamby pamby career politicians that only look to getting reelected…….
      PROOF? What did we do with the $6 Billion windfall last year from folks that paid Capitol Gains??
      Folks seem to vote for candidates that promise the moon to get votes by offer more free programs……………..

      Reply this comment
      • NTHEOC
        NTHEOC 15 October, 2015, 18:28

        Whistle, our form of Capitalism just doesn’t work. Look how it has worked for us so far. Well I guess if you are in the top percent then it has worked out good….

        Reply this comment
        • Rex the Wonder Dog!
          Rex the Wonder Dog! 17 October, 2015, 23:19

          It is working king great for trough feeding gov nepotism hires like NTHEOC…. of course it is really just workfare for morons like him, gifted job/work.

          Reply this comment
          • NTHEOC
            NTHEOC 17 October, 2015, 23:51

            jealousy is an ugly trait!

  6. Queeg
    Queeg 15 October, 2015, 19:55

    Comrades

    Capitalism is about exploting…….

    Capital….use OPM to leverage risky ventures.

    Labor …….globalist slavers.

    Land…….REIT’s, landlords.

    Management……unmerciful work hours for service workers.

    Bernie and Trump are getting it……how bout you?

    Reply this comment
  7. Richard Michael
    Richard Michael 20 October, 2015, 08:08

    I’m fighting the $485 million in new taxes here in Walnut Valley Unified School District.

    The district’s selling point is that it won’t raise your tax rates. It believes that the voters are incredibly stupid. And it should know. It taught them.

    The committee in favor is completely funded by school bond construction industry.

    metrolinktrainriders.com/WVUSD/astroturf.cfm

    It filed a false FPPC statement.

    http://www.metrolinktrainriders.com/WVUSD/fppc-complaint.cfm

    The SARCs for every school report that every school’s facilities are in tip-top shape.

    http://www.metrolinktrainriders.com/WVUSD/reportcard.cfm

    Yet the measure lists vague repairs and safety issues that, of course, must be taken care of.

    http://www.metrolinktrainriders.com/WVUSD/ballot-question.cfm

    I’m organizing a clearing house to help you fight these fraudulent bonds.

    “We shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills; we shall never surrender…” Winston Churchill

    Call or text: 909-378-5401

    Reply this comment

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